Let's see, what other federal agencies can get into the mix here. If I was a paranoid person, I would swear someone is trying to shut this company down.....and very well may. My bet is still $2 or below within a year.
Bridgepoint Education (BPI) fell about 9% after the for-profit educator revealed that the Department of Justice is investigating how the company compensates its admissions personnel.
“In its letter, the Justice Department indicated that it is considering a formal process to obtain evidence as part of its investigation and stated it is open to a voluntary presentation by the Company addressing the subject of its investigation,” Bridgepoint said in a statement. The company didn’t get into further detail. The college has been criticized for the amount of money it spends on recruiting students.
Get real. BPI has more than $8 in cash per share. If there is a fine, they will pay it and it will all be over. Thomson Reuters just upgraded the stock to BUY and they know a whole lot more than you, Shorty.
Forgot to add - this is a VERY serious development. If you want to know how serious, do a little research and find out how many publicly traded companies with market caps below $1 billion have been investigated by the DOJ.
Then, do a little further research and see what normally happens to companies in the DOJ's cross hairs. Might be a good idea if you are thinking about staying in this stock or thinking that this represents a market over reaction and a buy opportunity. Here's a hint. Very few companies of this size (and with this degree of bad press) ever fully recover. In the scheme of things, placating the acrediting bodies may end up being the least of BPI's worries.
Imagine the decision process at WASC or HLC. Gosh. BPI is under investigation by the DOJ. I think now is a good time to go easy on them.
It's never good to be the poster child of anything...and BPI has become the poster child of the excesses of for profit education. Taxpayers are funding a college with an 85% failure rate where the CEO walks away with tens of millions of dollars. This is not capitalism. This is exactly the type of company Ayn Rand was warning of. Good to see the system is working.
Are you kidding me? I am ashamed that I am even taking the time to respond to this, but please refer me to the last company that went out of business as a result of a DOJ investigation. There will be a fine and settlement, but that was already known since the NY AG is already looking into the same matter. I am always surprised by the ignorance of short sellers.